Budget FAQs

The City of Round Rock’s proposed budget for FY 2027 (Oct. 1, 2026, to Sept. 30, 2027) is $684.1 million. The proposed budget funds City services and operations as well as major investments in public safety, transportation, water and wastewater infrastructure, parks and recreation and other community priorities.

View more information about the proposed FY 2027 budget at roundrocktexas.gov/budget.

The proposed FY27 budget is $105.6 million, or about 13%, smaller than the adopted FY26 budget. Most of that difference is in the Community Investment Program (CIP), where spending varies from year to year based on the timing of major construction and infrastructure projects.

*Includes Water and Wastewater Utility, Hotel Occupancy Tax, Stormwater, Type B (transportation and economic development sales tax), and other special revenue fun

The City’s proposed budget for FY 2027 is $684.1 million, but only a portion of that will come from property taxes.

On Aug. 13, 2026, City Council proposed a maximum tax rate of 42.3 cents per $100 of valuation for Fiscal Year 2027. At this rate, the owner of a median taxable value home of $370,288 on average would pay approximately $131 per month in City taxes, which is an increase of approximately $8 per month compared with the estimated tax bill for the previous year’s median-value home.

The Fiscal Year 2027 proposed rate is higher than the “no new revenue” rate of 38.5 cents, which would raise approximately the same amount of revenue as last year on existing property based on this year’s property valuations.

The additional 3.8 cents above the no-new-revenue rate is proposed to pay for additional public safety operations and voter-approved bond projects. Of the 3.8 cents, 0.9 cents is for public safety maintenance and operations, 0.5 cents is for maintenance and operations associated with voter-approved bond projects, and 2.4 cents is for debt payments on voter-approved bond projects.

At the proposed rate, the owner of a median taxable value home of $370,288 on average would pay approximately $131 per month in City taxes, which is an increase of approximately $8 per month compared with the estimated tax bill for the previous year’s median-value home.

Property owners can use the City of Round Rock Property Tax Calculator to see how the proposed rate would affect their specific property.

The City’s General Fund is funded by three types of revenues: property tax, sales tax and other revenue sources.

Property Tax: Property taxes help cover many of the City’s core services including police, fire, transportation, parks and recreation and the library. Single-family homes provide approximately 18% of the General Fund revenues needed to provide City services.

Sales Tax: For every $100 in taxable purchases by visitors, residents and businesses, the City collects $2 in sales tax revenues. The General Fund gets $1.50 and the remaining 50 cents goes to the Type B Fund to pay for roads and economic development. Round Rock’s unique mix of destination shopping and corporate headquarters generates sales tax revenues that help reduce the property tax burden.

A half-cent of the City’s sales tax is dedicated to property tax reduction. For FY27, this reduces the proposed property tax rate by 12.7 cents, saving the median homeowner approximately $39 per month.

Other: Over 100 different revenue sources make up the remainder of General Fund revenues including fees for the City’s many recreation programs, building permits, and other services.

Visit roundrocktexas.gov/budget for a timeline of upcoming public meetings related to the budget.

You can also leave a comment on the City’s social media or email the City Council at citycouncil@roundrocktexas.gov.

The City’s total proposed budget is decreasing from $789.7 million in FY26 to $684.1 million in FY27, a decrease of $105.6 million, or about 13%. Most of that difference is in the Community Investment Program (CIP), which funds major infrastructure and construction projects, including roads, water and wastewater, City facilities and voter-approved bond projects. Capital spending can vary significantly from year to year based on project schedules and when those costs occur.

At the same time, the General Fund, which pays for day-to-day City operations and services, is increasing from $188.7 million in FY26 to a proposed $192.5 million in FY27, an increase of about 2%.

FY27 also marks a shift for several voter-approved projects from construction to operations. As new facilities come online, the City moves from paying to build them to paying to staff, operate and maintain them.

In May 2023, voters approved a $274 million G.O. bond package for parks, recreation, sports and public safety projects. At the time, the City estimated the impact on the tax rate would be phased in over five to seven years as bonds were issued, projects were built and new facilities began operating.

Several voter-approved projects are expected to be completed in FY27, including Fire Stations 10 and 11, Phase 2 of the Public Safety Training Center, the Old Settlers Park buildout and the Multipurpose Complex expansion.

Of the 3.8-cent difference between the proposed FY27 tax rate and the no-new-revenue rate, 2.9 cents is associated with voter-approved bond projects: 2.4 cents for debt payments and 0.5 cents for maintenance and operations.

Round Rock’s sales tax base helps reduce the amount needed from property taxes to provide City services. A half-cent of the City’s 2% local sales tax is dedicated to property tax reduction. For FY27, that revenue reduces the proposed property tax rate by 12.7 cents, saving the median homeowner approximately $39 per month.

Additionally, commercial properties paying property taxes lessens the burden on homeowners. Although commercial properties make up only 8% of real property parcels in Round Rock, they generate 52% of the City’s property tax revenues. Single-family residential properties make up 92% of parcels but generate 48% of property tax revenues. Combined with sales tax and the City’s other revenue sources, single-family homes provide approximately 18% of the General Fund revenues needed to provide City services.